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Equilibrium outcomes in repeated two-person, zero-sum games

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  • Guilherme Carmona

Abstract

We will consider repeated two-person, zero-sum games in which the preferences in the repeated game depend on the stage-game references, although not necessarily in a time-consistent way. We will assume that each players repeated game payoff function at each period of time is strictly increasing on the stage game payoffs and that the repeated game is itself a zero-sum game in every period. Under these assumptions, we will show that an outcome is a subgame perfect outcome if and only if its components are all Nash equilibria of the stage game.

Suggested Citation

  • Guilherme Carmona, 2002. "Equilibrium outcomes in repeated two-person, zero-sum games," Nova SBE Working Paper Series wp419, Universidade Nova de Lisboa, Nova School of Business and Economics.
    • Handle: RePEc:unl:unlfep:wp419
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    References listed on IDEAS

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    1. Steven M. Goldman, 1980. "Consistent Plans," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 533-537.
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    3. R. H. Strotz, 1955. "Myopia and Inconsistency in Dynamic Utility Maximization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(3), pages 165-180.
    4. Bezalel Peleg & Menahem E. Yaari, 1973. "On the Existence of a Consistent Course of Action when Tastes are Changing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(3), pages 391-401.
    5. Narayana R. Kocherlakota, 2001. "Looking for evidence of time-inconsistent preferences in asset market data," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 25(Sum), pages 13-24.
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    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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